On June 1, a company was started with an initial investment in the company of $2
ID: 2502114 • Letter: O
Question
On June 1, a company was started with an initial investment in the company of $22,210 cash. Here are the assets, liabilities, and common stock of the c/ompany at June 30, and the revenues and expenses for the month of june, its first month of operations:
cash: 5519
accounts receivable: 4158
service revenue: 8419
Supplies: 2329
advertising expense: 400
equipment: 26919
common stock: 22230
Notes payable: 13838
Accounts payable: 658
Supplies expense: 1071
maintenance and repairs expense: 671
utilities expense: 229
salaries and wages expense: 2319
In June, the company issued no additional stock but paid dividends of $1530
1. Prepare a balance sheet at June 30, 2014
Explanation / Answer
Income statement
Retained Earnings
Opening balance $0
Add:net income $3729
Less:Dividend paid ( $1530)
Closing bal $2199
Assets Liabilities
Cash $5519 Account payable $658
A/c receivable 4518 Notes payable $13,838
Supplies 2319 total current liabiltiies $14,496
total current assets $12,356 Stockholder's equity
Fixed assets: Common stock $22,230
Equipmet 26,919 Retained earnings 2,199
total equity $24,429
totol assets $38,925 total $38,925
Service revenue $8,419 Less:Expenses Advertising expense $400 Supplies expense $1071 Maintenance and repairs expense $ 671 Utilities expense $229 Salaries & wages expense $2319 $4,690 Net income $3729Related Questions
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